City watchdog set for shake-up

THE City's new chief watchdog, John Tiner, today promised a swift shake-up of financial regulation in Britain following his appointment.

Tiner, who was one of the favourites to succeed Sir Howard Davies as head of the Financial Services Authority, will step up in September when Davies becomes Director of the London School of Economics.

He will work alongside new FSA chairman Callum McCarthy, the former energy regulator who was appointed in April. The roles of chairman and chief executive, both held by Davies, are being split for the first time.

Tiner, 46, wasted no time in promising a top-to-bottom review of the much-criticised authority after the Davies era.

In a memo to staff, he said it was clear 'the move to a structure with a chairman and separate chief executive means that we need to revisit the way in which we are organised, including the various processes we have for decision-making. This will be high on my agenda'.

He said he would brief staff again on any proposals in late September.

A spokesman for the FSA said the move to reorganise the authority, based in Canary Wharf, was not a criticism of Davies' leadership but 'a consequence of the change of set-up with a separate chairman and chief executive'.

Tiner is thought to have fought off strong competition from a shortlist of 11 candidates, including fellow managing director Carol Sergeant, head of regulation enforcement.

The third managing director, Michael Foot, who heads the markets directorate, is retiring next year and did not throw his hat into the ring.

Tiner, a former Andersen accountant, joined the FSA in April 2001, taking a rumoured £750,000 pay cut to become managing director of the consumer, investment and insurance directorate, leaving Andersen where he was head of its financial services practice. His pay is not being disclosed but last year Davies got £386,000.

Tiner has spent much of his two years at the FSA sorting out the Equitable Life, mortgage endowment and split-capital trusts fiascos.

He is credited with reforms of the insurance sector in his Tiner Report last October that helped prevent a disastrous insurance sector insolvency

The life of Tiner

•Born 25 February 1957.

•Educated St Peter's Guildford and studied accounting at Kingston University, but did not graduate.

•Joined Tansley Witt, a firm bought by Andersen in 1979.

•Married with three children.

•Lives in Dorking, Surrey.

•Received a one-year driving ban for drink-driving in 1991.

•Leeds United and Bath Rugby Club supporter.

•Keen sailor, tennis player, golfer and consumer of marmite toast.

Establishment welcomes Andersen man

BRITAIN'S financial establishment reacted favourably to the news of Tiner's promotion, the latest member of the now dissolved Andersen 'family' to attain high office.

John McFall, chairman of the Treasury Select Committee, said: 'He brings a wealth of experience to the job from the outside world. But he has a big agenda to undertake - to prove that the FSA is a proactive rather than just a reactive organisation.'

Clive Harrison, chief executive of stockbroker Fiske and a vocal opponent of the Davies regime, said: 'Tiner is definitely a very substantial improvement.'

But he added the new FSA chief must crack down on bureaucracy. 'The same old crooks are operating just as freely as ever in the City while everyone else is box-ticking furiously. Political correctness has been brought to the City and it simply isn't working,' he said.

Paul Smee, head of the Association of Independent Financial Advisers, said: 'He holds no terrors for us. We wish him well in an incredibly difficult task.'